Halliburton (HAL -0.11%), one of the world’s largest oilfield services providers, released its results for the second quarter of fiscal 2025 on July 22, 2025. The main news from the report was a revenue beat, with the company posting $5.51 billion in GAAP revenue for Q2 2025—1.7% above expectations. Adjusted earnings per share (EPS) landed at $0.55, almost exactly matching consensus. However, the quarter highlighted fresh margin pressures and signaled a more cautious outlook for the oilfield services market ahead, underscored by management statements about subdued demand. Overall, the period showed modest operational progress but also underscored ongoing challenges in profitability.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $0.55 | $0.55 | N/A | N/A |
| Revenue | $5.51 billion | $5.41 billion | $5.83 billion | (5.5%) |
| Operating Margin | 13% | 17.7% | (4.5 pp) | |
| Free Cash Flow | $582 million | $999 million | (41.7%) | |
| Net Income | $472 million | $709 million | (33.4%) |
Source: Halliburton. Note: Analysts’ consensus estimates for the quarter provided by FactSet. “pp” = percentage points.
Business Overview and Strategic Priorities
Halliburton operates in more than 70 countries, providing oilfield services and products to companies that explore, develop, and produce oil and natural gas. Its core offerings fall into two segments: Completions & Production (C&P) and Drilling & Evaluation (D&E). C&P includes services and equipment for well completion, hydraulic fracturing, and artificial lift, while D&E covers drilling, wireline, and reservoir evaluation technologies.
The company’s performance relies heavily on global demand for oil and gas, which shapes customer spending on drilling and production projects. To remain competitive, Halliburton has focused on digital transformation, international revenue growth, technological advancements, and returning capital to shareholders. Capital efficiency—keeping capital expenditures near 6% of revenue in 2024— and investments in innovation and sustainability are top priorities. Management has also expanded Halliburton Labs, its clean energy incubator, to target the transition toward sustainable energy.
Quarterly Highlights: Financial Results and Operating Developments
Revenue (GAAP) for Q2 2025 came in above expectations. However, that headline number masked underlying softness, as total revenue dropped 5.5% compared to the second quarter of 2024. Net income (GAAP) was $204 million, compared to $606 million in the first quarter of 2024, a decrease of 66.3%. The results reflected pricing and utilization pressures within the company’s major divisions.
Completions & Production, a segment known for its pressure pumping and well completion tool offerings, generated $3.17 billion in GAAP revenue in Q2 2025 (down 8% compared to the prior year). Operating income for the segment was $513 million, a decrease of 3% compared to the first quarter of 2025, driven mainly by lower pricing for stimulation services in the U.S. and decreased activity in the Middle East. Notably, margin pressure was attributed to customer pricing trends and a reduction in North American artificial lift activity, which involves equipment used to enhance oil extraction rates from wells.
The Drilling & Evaluation segment reported GAAP revenue of $2.34 billion for Q2 2025 (down 3.8% compared to the second quarter of 2024.). The segment’s operating income (GAAP) decreased 11% to $312 million, compared to the first quarter of 2025, with operating margin for the segment at 13%. The main factors cited were a global dip in software sales, lower wireline activity—where electrical tools are lowered into wells to gather reservoir information—and higher mobilization costs as new international contracts began.
North America revenue totaled $2.26 billion (GAAP), down 9.0% compared to the second quarter of 2024, held flat sequentially by offsetting trends: stronger U.S. land cementing contrasted by softer Gulf of America activity and less artificial lift demand. Within regions, Latin America’s GAAP revenue was $977 million, down 11% compared to Q2 2024. Europe/Africa/CIS posted revenue of $820 million, an increase of 8% compared to the second quarter of 2024, lifted by new projects in Norway. The Middle East and Asia region had revenue of $1,454 million, down 2.9% compared to Q2 2024, primarily due to lower activity levels in Kuwait and Saudi Arabia.
On the technology front, Halliburton marked several milestones. It launched EarthStar 3DX, a new resistivity service providing 3D geological insights up to 50 feet ahead of the bit in horizontal wells. The company also debuted fully automated surface and subsurface drilling, partnering with Nabors Industries to automate drilling in Oman. In completions, a closed-loop hydraulic fracturing system was rolled out with Chevron U.S.A, adding automation and real-time feedback to enhance well performance.
There were no major one-time charges announced in the quarter. Ongoing SAP S4 migration expenses, related to overhauling the company’s enterprise software systems, were reported at $32 million. Another notable investment was a $345 million outlay to boost ownership in VoltaGrid, a distributed power solutions company. Total capital expenditures were $354 million, keeping with Halliburton’s commitment to capital discipline.
Halliburton returned $250 million to shareholders through share repurchases and paid a $0.17 per share quarterly dividend, mirroring the prior period’s payout. The company continues to emphasize both buybacks and dividends as core elements of its capital return framework.
Looking Ahead: Guidance and Investor Focus
Management’s outlook has become more cautious, warning of “softer than previously expected” demand in the global oilfield services sector over the coming months. Management did highlight ongoing risks, including further volatility in oil and gas prices, delay or softness in customer spending, and uncertainties in key international markets such as Mexico and the Middle East. Potential impacts from recent tariffs could affect earnings in future quarters; the longer-term impacts are to be quantified as conditions evolve.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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